Maudore Announces Year End 2013 Results and Filing of Proxy Circular for Annual and Special Meeting
MONTREAL, April 25, 2014 /CNW Telbec/ – Maudore Minerals Ltd. (“Maudore” or the “Corporation“) (TSXV: MAO) (US OTC: MAOMF) (Frankfurt Exchange: M6L) announces its results for the fiscal year ended December 31, 2013.
Financial results are based on International Financial Reporting
Standards (“IFRS”) and dollars are reported in Canadian currency,
unless otherwise noted.
Highlights for 2013
-- Acquisition of Aurbec Mines Inc. ("Aurbec") (previously named NAP Québec Mines Ltd) from North American Palladium Ltd on March 22, 2013 funded through a secured term loan of $22 million ("Credit Facility") provided to the Corporation by FBC Holdings S.à r.l. ("FBC"); -- Closing a brokered private placement for $15.5 million on April 12, 2013; -- Initiation of exploration and development drilling underground at Sleeping Giant on the new ore zones and extensions to the historical high grade zones; -- Suspension of the Vezza project's development on July 16th, 2013 and subsequent mine out of the currently developed ore zones by the end of September 2013; -- August 2013 re-start of underground mining at the Sleeping Giant mine in remnant mining areas; -- Completion of a custom milling agreement with Abcourt Mines Inc ("Abcourt") in September 2013; -- Recent reduction in gold prices created a strain on the Corporation's cash resources. Ongoing discussions took place throughout the year with its creditors. In March 2014, the Corporation has reached an agreement with FBC which provides it with access to additional funding (the "FBC Agreement") (refer to press release dated March 14, 2014).
-- Revenues of $1.6 million in 2013 coming from the sale of gold at the Sleeping Giant mine and custom milling. In 2012, there were no gold sales as Maudore was an junior exploration Corporation; -- Net loss of ($30.3) million in 2013, or ($0.73) per share compare with a net loss of ($14.7) million, or ($0.55) per share in 2012. Out of importance, the following non-recurring expenses were incurred: o $11.0 million impairment on Vezza following the suspension of its development; o $3.5 million professional fees relating to the acquisition of Aurbec, the rights offering and debt restructuring negotiations. In 2012, $1.7 million were incurred in professional fees on the proxy contest; o $7.7 million for the fair value variation on the Credit Facility that must be recorded as per IFRS rules even though the Corporation reached the FBC Agreement; -- Vezza production of 10,249 ounces of gold of which 10,247 were sold in 2013 generating $14.3 million of revenues that are capitalized against the development cost of Vezza;
The Corporation also announces that it has mailed to shareholders and
filed in SEDAR the Management Proxy Circular that has been prepared in
connection with its upcoming annual and special meeting of shareholders
scheduled to be held on May 22, 2014.
At that meeting, shareholders will be asked to approve, among other
matters, the previously announced financing and debt restructuring
transactions entered into by the Corporation with FBC which have been
designed to improve the financial position of the Corporation. Should
the FBC Agreement not to be approved by the disinterested shareholders,
this would result in Maudore and/or Aurbec being in default of their
obligations under the Credit Agreement and of their payment obligations
towards other creditors. Should any of those creditors seek to
exercise their rights to obtain repayment of their debts, it is likely
that Maudore and/or Aurbec would seek protection under the Companies’
Creditors Arrangement Act (Canada) or the Bankruptcy and Insolvency Act
(Canada) and that in such a scenario the resulting value of the equity
shareholdings of the Shareholders would be reduced to virtually nil.
The Management Proxy Circular contains important information about these
transactions, as well as the unanimous recommendation of the
Corporation’s board of directors that shareholders vote to approve such
About Maudore Minerals Ltd.
Maudore is a Quebec-based junior gold company in production, with mining
and milling operations as well as more than 22 exploration projects.
Five of these projects are at an advanced stage of development with
reported current and historical resources and mining. Currently, gold
production is ramping up at the Sleeping Giant mine. The Corporation’s
projects span some 120 km, east-west, of the underexplored Northern
Volcanic Zone of the Abitibi Greenstone Belt and cover a total area of
1,532 km² with the Sleeping Giant Processing Facility within trucking
distance of key development projects.
Cautionary Statement Regarding Forward-Looking Statements
This release and other documents filed by the Corporation contain
forward-looking statements. All statements that are not clearly
historical in nature or that necessarily depend on future events are
forward-looking, and the words “intend”, “anticipate”, “believe”,
“expect”, “estimate”, “plan” and similar expressions are generally
intended to identify forward-looking statements. These forward-looking
statements include, without limitation, performance and achievements of
the Corporation, business and financing plans, business trends and
future operating revenues. These statements are inherently uncertain
and actual achievements of the Corporation or other future events or
conditions may differ materially from those reflected in the
forward-looking statements due to a variety of risks, uncertainties and
other factors, including, without limitation, financial related risks,
unstable gold and metal prices, operational risks including those
related to title, significant uncertainty related to inferred mineral
resources, operational hazards, unexpected geological situations,
unfavourable mining conditions, changing regulations and governmental
policies, failure to obtain required permits and approvals from
government authorities, failure to obtain any required approvals of the
TSX Venture Exchange or from shareholders, failure to obtain any
required financing, failure to complete any of the transactions
described herein, increased competition from other companies many of
which have greater financial resources, dependence on key personnel and
environmental risks and the other risks described in the Corporation’s
continuous disclosure documents.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
Maudore Minerals Ltd. Consolidated Statements of Financial Position (in Canadian dollars) 2013 2012 2011 $ $ $ (restated) (restated) ASSETS Current Cash and cash equivalents 820,734 3,126,129 15,169,610 Restricted cash 3,316,161 - - Tax credits receivable 4,705,289 149,286 3,682,447 Accounts receivable 291,299 - - Sales tax receivable 197,653 211,700 350,696 Inventories 3,130,141 - - Prepaid expenses 463,589 40,513 56,699 12,924,866 3,527,628 19,259,452 Non-current Reclamation deposit 1,880,084 - - Non-current portion of tax 613,825 - - credits receivable Exploration and evaluation 5,325,775 710,469 557,248 assets Property, plant and equipment 9,461,520 - - 17,281,204 710,469 557,248 Total assets 30,206,070 4,238,097 19,816,700 LIABILITIES Current Accounts payable and accrued 9,962,427 2,370,541 1,953,756 liabilities Liabilities related to the - - 5,435,214 issuance of flow-through shares units Credit facility 27,315,324 - - Current portion of obligations 185,407 - - under finance leases 37,463,158 2,370,541 7,388,970 Non-current Term loans - 3,091,383 - Obligations under finance leases 13,143 - - Mine restoration provision 6,232,912 - - Other liabilities 212,706 - - 6,458,761 3,091,383 - Total liabilities 43,921,919 5,461,924 7,388,970 EQUITY Share capital 60,079,772 43,333,965 42,721,672 Contributed surplus 6,579,202 5,979,425 4,970,148 Warrants 1,050,803 599,777 1,176,091 Deficit (81,425,626) (51,136,994) (36,440,181) Total equity (13,715,849) (1,223,827) 12,427,730 Total liabilities and equity 30,206,070 4,238,097 19,816,700
Maudore Minerals Ltd. Consolidated Statements of Comprehensive Loss (in Canadian dollars) 2013 2012 $ $ (restated) REVENUES 1,570,081 - OPERATING EXPENSES Production costs 4,189,843 - Depreciation and amortization 91,593 - Total mining operating expenses 4,281,436 - Loss from mining operations (2,711,355) - OTHER EXPENSES General and administrative expenses 2,915,606 2,828,363 Acquisition related expenses 2,194,231 - Rights offering expenses 683,388 - Debt restructuring expenses 646,519 - Professional fees related to proxy contest - 1,687,825 Exploration and evaluation expenses 699,607 15,639,427 Gain on disposal of property, plant and (22,200) - equipment Impairment of property, plant and equipment 11,029,376 - Total other expenses 18,146,527 20,155,615 Loss from operations (20,857,882) (20,155,615) OTHER EXPENSES (INCOME) Financial expenses 1,649,394 63,313 Fair value variation on credit facility 7,715,324 - Finance costs on mine restoration provision 77,210 - Interest income (101,068) (86,901) Loss before income taxes (30,198,742) (20,132,027) Deferred income taxes (recovery) and mining 89,890 (5,435,214) duty taxes NET LOSS AND COMPREHENSIVE LOSS (30,288,632) (14,696,813)
Maudore Minerals Ltd. Consolidated Statements of Cash flows (in Canadian dollars) 2013 2012 $ $ (restated) OPERATING ACTIVITIES Net loss (30,288,632) (14,696,813) Adjustments: Recovery of deferred income taxes - (5,435,214) Share-based compensation - 672,300 Accrued interest related to term loans (18,329) 23,783 Transaction costs related to term loans 284,397 - Fair value variation on credit facility 7,715,324 - Depreciation and amortization 91,593 - Gain on disposal of property, plant and (22,200) - equipment Impairment of property, plant and equipment 11,029,376 - Accretion on payables resulting from the 54,780 - acquisition of Aurbec Mines Inc. Finance costs on mine restoration provision 77,210 - Changes in working capital items 2,318,794 411,147 Net cash flows used in operating activities (8,757,687) (19,024,797) INVESTING ACTIVITIES Acquisition of Aurbec Mines Inc. (18,250,000) - Additions to exploration and evaluation (115,306) (111,721) assets Additions to property, plant and equipment (17,709,746) - Sales deducted from capitalized costs 14,310,847 Proceeds on disposal of property, plant and 23,200 - equipment Reclamation deposit (1,880,084) - Tax credits received 1,130,276 3,693,981 Net cash flows from (used in) investing (22,490,813) 3,582,260 activities FINANCING Term loans - 3,250,000 Repayment of term loans (3,250,000) - Term loans structuring fees (107,451) (182,400) Repayment of bank indebtedness (179,159) - Issue of credit facility 22,000,000 - Transaction cost paid to FBC Holding S.à r.l. (440,000) - Restricted funds (3,316,161) - Repayment of obligation under finance leases (142,930) - Other liabilities 60,196 - Issue of shares 15,506,250 387,325 Share issue expenses (1,187,640) (55,869) Net cash flows from financing activities 28,943,105 3,399,056 Net change in cash and cash equivalents (2,305,395) (12,043,481) Cash and cash equivalents, beginning of year 3,126,129 15,169,610 Cash, end of year 820,734 3,126,129
SOURCE Maudore Minerals Ltd.